Lots of companies are contracting out all sorts of work to the lowest bidder. This is basically what's happening at the airlines too and why I left. It's not in the news much and the media is never able to explain it properly when they do print a story about it. Basically, in the 90's and with newly made small jets they started pitting regional airlines against major airlines and giving short haul (3 hours or less) flying to the regionals. In the 2000's, once there were a number of regionals operating jets they started pitting the regionals against each other by awarding contracts to the lowest bidder. Customer service and reliability went down the toilet.
Since around 2010 the small jets are nearing the end of their design life and the regionals have senior people on their payroll so they now shift flying back to the majors, almost all of which have gone through bankruptcies and mergers and have lowered their labor costs. The contract system is a brilliant way for management to beat the seniority system and the unions. Most of the airlines are with one union so they have their own members (via their employer) bidding against each other for work.
The airlines are wanting H1B pilots but so far the gov has said no. The pilot shortage is a myth as the only shortage is for people to start at the regionals. Today you would need about 100k in flight school training on top of a 4 year degree for a 25k a year job, kind of a bad R.O.I. The FAA released that there are two ATP's certificate holders in the US for every current slot at the airline. Shortage? I don't think so.
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